BULLETIN NO.: MGR-97-033
TO: All Reinsured Companies
All Risk Management Field Offices
All Other Interested Parties
FROM: Kenneth D. Ackerman
Administrator
SUBJECT: 1. Revised Final Draft 1998 Standard Reinsurance Agreement (SRA)
2. Assigned Risk and Development Fund Designations
BACKGROUND:
1. Revised Final Draft SRA
The Risk Management Agency (RMA) has revised the draft 1998 Standard
Reinsurance Agreement (SRA) released on June 27, 1997, to incorporate
comments received from many sources. The efforts of everyone to improve
the document are appreciated.
2. Designations
Sales have begun or have been completed for some crops and risk periods
are approaching for the 1998 reinsurance year. Designations of contracts
to the Assigned Risk Fund and the Developmental Funds must be done as soon
as possible for these crops.
ACTION:
1. Attached is the revised final draft of the SRA, with changes to the June
27 draft highlighted. If you have any final comments, they should be
submitted to RMA by September 12, 1997. All comments should be sent via
overnight mail, or faxed to the following address:
USDA/Risk Management Agency
Reinsurance Services Division
E. Heyward Baker, Director
1400 Independence Ave, S.W.
Rm 6727-S, Stop Code 0530
Washington, D.C. 20250
Fax: (202) 690-3604
BULLETIN NO.: MGR-97-033 2
2. Designations of eligible crop insurance contracts to the Assigned Risk
Fund must be made to the Data Acceptance System as follows:
A. For contracts with a sales closing date of July 31, 1997, not later
than the cut-off date for the week ending September 6, 1997.
B. For all other crop insurance contracts, as specified in the
attached revised draft SRA.
3. Designations of eligible crop insurance contracts to the Developmental
Fund must be made to the Data Acceptance System as follows:
A. For carryover contracts with contract change dates of August 31,
1997, or earlier,not later than the cut-off date for the week
ending September 13, 1997.
B. For carryover contracts with contract change dates of September 30,
1997, or later,as specified in the attached revised final draft SRA.
C. For new contracts with the sales closing date of July 31, 1997, not
later than the cut-off date for the week ending September 6, 1997.
D. For new contracts with sales closing dates of August 31, 1997, or
later, as specified in the attached revised final draft SRA.
4. The Data Acceptance system will be modified to process and accept
policies regarding designations to the Assigned Risk and Developmental
Funds. A new field will be added to the Insurance in Force - Type 14
record. Companies will need to identify carryover contracts on the Type
14 record. A carryover contract is defined as one in which the person
had insurance on a crop with the company in the State and county the
previous year. Additional fund designation flags will be added to
identify assigned risk policies with written agreements and to transfer
a policy from the developmental fund to the assigned risk fund. The
Actuarial Division will provide the draft Insurance in Force - Type 14
record with these changes to the Company Data Processing Managers.
Attachment: Revised final draft SRA
RMA:KC:R&D:lmg:08 /13/97/816-926-7914:h:\wpdoc\MG97033.WPD
Revised:08/22/97